- Arizona lawmakers approved two bills to allow public investment in Bitcoin and other digital assets.
- The bills move Arizona closer than any other state to creating a crypto reserve for treasury and pension funds.
- The governor has not confirmed if she will sign the bills as she pushes for a healthcare funding agreement.
Arizona lawmakers advanced two key cryptocurrency bills aimed at forming a state-level digital asset reserve. The Arizona House of Representatives passed Senate Bill 1025 (SB1025) and Senate Bill 1373 (SB1373).
The bill passed with 31 votes in favor and 25 votes against. The bill offers Arizona the ability to allocate up to 10% of treasury and pension funds into digital assets. The bill supports investments into Bitcoin and multiple cryptocurrency options.
SB1373, which seeks to establish a Digital Assets Strategic Reserve, received stronger support. It passed with 37 votes supporting and 19 opposing. The reserve would hold digital assets as part of the state’s financial strategy.
Both bills now await review by Governor Katie Hobbs. Her stance regarding these crypto-related legislative measures is not publicly established. Governor Hobbs announced her plan to block legislative measures until legislators received bipartisan agreement on disability healthcare funding.
Hobbs has not expressed direct opinions about SB1025 or SB1373 despite her typical political views. This has left the future of both bills uncertain.
Lawmakers Push Ahead Amid Uncertain Support
The proposals would make Arizona the closest among all U.S. states to establishing a crypto reserve. While New Hampshire’s House has passed a similar measure, it still awaits a full Senate vote.
Supporters of the Arizona bills argue that Bitcoin offers protection against inflation. They also believe it could strengthen the state’s financial position. They cite Bitcoin’s limited supply and decentralized nature as major benefits.
The bills have Republican sponsors in both chambers. They emphasize the importance of preparing for broader digital asset adoption. They say around 15 other states are currently reviewing similar legislation.
Concerns Over Market Volatility and Oversight
If signed into law, Arizona’s treasurer would be authorized to invest a portion of state assets in Bitcoin. Other approved digital assets could also be included, depending on market conditions and risk assessments.
Critics remain cautious about the bills. They point to Bitcoin’s high volatility as a risk to public funds. They also raise concerns about the lack of federal oversight in the crypto market.
Some lawmakers worry that speculative assets may not be suitable for public investments. They urge more regulation before states make significant financial commitments to digital assets.
National Trend Toward Digital Asset Reserves
Nationally, interest in crypto reserves is growing. In March, a federal proposal called for a Strategic Bitcoin Reserve. It marked the first major step toward a possible national digital asset stockpile.
Currently, 19 states have pending crypto reserve bills. Arizona and Utah lead in legislative progress, while others have faced rejections. Despite challenges, state-level interest in digital reserves continues to expand.
